Rental Operations

L.A. Airport Board Approves Facility Charge

LOS ANGELES -- The Los Angeles Board of Airport Commissioners has approved the collection of a state-authorized "customer facility charge" from rental car companies serving Los Angeles International and Ontario International airports.

The action was taken in accordance with California Assembly Bill 491, which allows airports in the state to collect fees for the development of consolidated rental car facilities or consolidated ground transportation for airport rental car concessionaires.

The bill, effective Jan. 1, 2002, authorizes a $10 customer facility charge per on-airport rental car agency transaction to fund both the development of a consolidated car rental facility and a common-use transportation system.

The Ontario airport (ONT) operates a ground transportation center that consolidates on-airport car rental agencies into one location and provides a free shuttle bus to and from the passenger terminals. The consolidated ground transportation center, constructed and opened on Jan. 5, 1999, was financed primarily through revenue bonds.

Monies from the $10 customer facility charge at LAX will be collected and placed in a trust for the future financing, design, construction and operation of such a ground transportation center and central transportation system.

"Collecting customer facility charges from rental car customers who use airport services will ultimately assist Los Angeles World Airports in its efforts toward reducing traffic congestion and vehicular air emissions, while providing an efficient, secure, safe and reliable transportation system at both LAX and ONT," said Richard Janisse, Los Angeles World Airports deputy executive director of properties and concessions.

LAX currently has concession agreements with eight on-airport car rental companies that use large buses to pick up their customers. The current agreements will expire on Jan. 31, 2003. All future rental car concessionaires will be required to use LAX's ground transportation center and common-use transportation system.

ONT currently has rental car concession agreements with six on-airport operators. LAWA officials estimate that LAX could annually collect approximately $23.8 million and ONT could collect $4.2 million, based on the number of on-airport car rental company transactions.

Rental Operations

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